Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale

Zimmer Company owns an executive plane that originally cost $$12,800,000.$ It has recorded straight$-$line depreciation on the plane for seven full years, calculated assuming a $$1,600,000$ expected salvage value at the end of its estimated $10-$year useful life. Zimmer disposes of the plane at the end of the seventh year.

a$.$ At the disposal date, what is the $(1)$ cumulative depreciation expense and $(2)$ net book value of the plane?

$(1)$ cumulative depreciation expenseAnswer $1(2)$ net book value of the planeAnswer $2$

b$.$ How much gain or $($loss$)$ is reported at disposal if the sales price is:

$1.$ A cash amount equal to the plane$$s net book value.Answer $32.$ $$2,850,000$ cash.Answer $43.$ $$7,000,000$ cash.Answer $5$